II 

118TH CONGRESS 

2D SESSION S. 4053 

To prohibit the sale, lease, or loan of used motor vehicles with open recalls 

to consumers by auto dealers. 

IN THE SENATE OF THE UNITED STATES 

MARCH 22, 2024 

Mr. BLUMENTHAL (for himself, Mr. MARKEY, and Ms. WARREN) introduced 

the following bill; which was read twice and referred to the Committee 

on Commerce, Science, and Transportation 

A BILL 

To prohibit the sale, lease, or loan of used motor vehicles 

with open recalls to consumers by auto dealers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Used Car Safety Recall 

5 Repair Act’’. 

6 SEC. 2. USED MOTOR VEHICLE CONSUMER PROTECTION. 

7 (a) DEFINITIONS.—Section 30102(a) of title 49, 

8 United States Code, is amended— 

9 (1) in the matter preceding paragraph (1), by 

10 striking ‘‘chapter—’’ and inserting ‘‘chapter:’’; 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•S 4053 IS

1 (2) in each of paragraphs (1) through (13)— 

2 (A) by inserting ‘‘The term’’ after the 

3 paragraph designation; and 

4 (B) by inserting a paragraph heading, the 

5 text of which is comprised of the term defined 

6 in the paragraph; and 

7 (3) by adding at the end the following: 

8 ‘‘(14) USED MOTOR VEHICLE.—The term ‘used 

9 motor vehicle’ means a motor vehicle that has pre10 viously been purchased other than for resale.’’. 

11 (b) DEALER REIMBURSEMENT AND LIMITATION ON

12 THE SALE, LEASE, OR LOAN OF USED MOTOR VEHI13 CLES.—Section 30120 of title 49, United States Code, is 

14 amended— 

15 (1) in subsection (f)— 

16 (A) by redesignating paragraphs (1) and 

17 (2) as paragraphs (2) and (1), respectively, and 

18 moving the paragraphs so as to appear in nu19 merical order; 

20 (B) in paragraph (2) (as so redesignated), 

21 in the paragraph heading, by striking ‘‘IN GEN22 ERAL’’ and inserting ‘‘REIMBURSEMENT FOR

23 REMEDY PROVIDED’’; and 

24 (C) by adding at the end the following: 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•S 4053 IS

1 ‘‘(3) UNAVAILABLE REMEDY FOR A USED

2 MOTOR VEHICLE.— 

3 ‘‘(A) DEFINITION OF DEALER.—In this 

4 paragraph, the term ‘dealer’ has the meaning 

5 given the term in subsection (l)(1). 

6 ‘‘(B) REIMBURSEMENT.— 

7 ‘‘(i) IN GENERAL.—If a dealer is in 

8 possession of a used motor vehicle and the 

9 manufacturer of that used motor vehicle 

10 has failed to make a remedy available by 

11 the date described in clause (ii), the manu12 facturer shall reimburse the dealer at the 

13 rate described in clause (iii) until the ear14 lier of— 

15 ‘‘(I) the date on which a remedy 

16 is made available by the manufac17 turer; and 

18 ‘‘(II) the date on which the total 

19 amount of payments to a dealer under 

20 this paragraph equals the fair market 

21 value of the used motor vehicle. 

22 ‘‘(ii) DATE DESCRIBED.—The date re23 ferred to in clause (i) is the date that is 60 

24 days after the date described in section 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•S 4053 IS

1 30119(b) and specified by the manufac2 turer— 

3 ‘‘(I) in a notification under sec4 tion 30119(a)(5); or 

5 ‘‘(II) under section 30121(c)(2). 

6 ‘‘(iii) RATE DESCRIBED.—The rate re7 ferred to in clause (i) is a rate determined 

8 by the Secretary that is not less than 1 

9 percent of the fair market value of the 

10 used motor vehicle per month, which shall 

11 be prorated on a daily basis for each day 

12 that the used motor vehicle is in the pos13 session of the dealer— 

14 ‘‘(I) after the date described in 

15 clause (ii); and 

16 ‘‘(II) before the date on which a 

17 remedy is made available by the man18 ufacturer. 

19 ‘‘(iv) LIMITATION.—The total amount 

20 of payments to a dealer under this para21 graph with respect to a used motor vehicle 

22 shall not exceed the fair market value of 

23 that used motor vehicle.’’; and 

24 (2) by adding at the end the following: 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•S 4053 IS

1 ‘‘(l) LIMITATION ON THE SALE, LEASE, OR LOAN OF

2 USED MOTOR VEHICLES.— 

3 ‘‘(1) DEFINITION OF DEALER.—In this sub4 section, the term ‘dealer’ means a person that, dur5 ing the 1-year period ending on the date of the sale, 

6 lease, or loan of a used motor vehicle, has sold at 

7 least 5 motor vehicles to buyers that in good faith 

8 purchased the vehicles other than for resale. 

9 ‘‘(2) LIMITATION.—Except as provided under 

10 paragraph (3), a dealer shall not sell, lease, or loan 

11 a used motor vehicle until after any defect or non12 compliance for which notification is required under 

13 subsection (b)(2)(A) or (c) of section 30118 with re14 spect to the vehicle has been remedied. 

15 ‘‘(3) EXCEPTION.—Paragraph (2) shall not 

16 apply if— 

17 ‘‘(A) the recall information regarding the 

18 used motor vehicle— 

19 ‘‘(i) was not available at the time of 

20 sale, lease, or loan using the means estab21 lished by the Secretary under section 

22 31301 of the Moving Ahead for Progress 

23 in the 21st Century Act (49 U.S.C. 30166 

24 note; Public Law 112–141); and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•S 4053 IS

1 ‘‘(ii) was not available on the website 

2 of the manufacturer; 

3 ‘‘(B) notification of the defect or non4 compliance is required by an order issued by 

5 the Secretary under section 30118(b)(2), but 

6 enforcement of the order is set aside in a civil 

7 action to which section 30121(d) applies; 

8 ‘‘(C) the used motor vehicle is sold at 

9 wholesale; or 

10 ‘‘(D)(i) the used motor vehicle is a junk 

11 automobile (as defined in section 30501); and 

12 ‘‘(ii) all required information with respect 

13 to the used motor vehicle has been reported to 

14 the National Motor Vehicle Title Information 

15 System under section 30504.’’. 

16 SEC. 3. EFFECTIVE DATE. 

17 This Act and the amendments made by this Act shall 

18 take effect on the date that is 1 year after the date of 

19 enactment of this Act. 

Æ 


kjohnson on DSK7ZCZBW3PROD with $$_JOB